Gold, Silver, and Indexes Using Price Action

GLD price has breached the SL. The 50% area was briefly breached but price couldn't stay above. The previous swing low is around 126 and is also a level to keep an eye on. In case we notice supply weakening or demand strengthening we might just exit this short. For now we stay and give price some room to manoeuvre.

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Gringo
 

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Quote from dbphoenix:

The 50% level is actually 26.
More...
.

The lower 50% was to keep track of the last swing down, from around 127 to 122. This 50% thing is a bit newer as I was using LSL etc to keep the price in context.

So what you are saying is the larger swing 131-122 is more important than the one from 127-122?

I am attaching the new chart. 126.5 is 50% or so and 126 is LSL.

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Gringo
 

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Quote from Gringo:

.

The lower 50% was to keep track of the last swing down, from around 127 to 122. This 50% thing is a bit newer as I was using LSL etc to keep the price in context.

So what you are saying is the larger swing 131-122 is more important than the one from 127-122?
More...

Depends on how you define "swing". To me the 127-122 is a continuation of the preceding move.
 
Quote from dbphoenix:

Depends on how you define "swing". To me the 127-122 is a continuation of the preceding move.
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That makes sense. Lines in the head. :)
 
Price for GLD is closer to potential support here. We had price rebound from here a few days back. The supply line has been breached alerting us to a possibility of trend change on the dailies. The trend is still down from our perspective but staying alert here is probably prudent. If price shows signs of strength we might have to reduce some of our position or exit altogether. For now our short from 14 trading days ago stands. Lets have a look at the bigger picture on the weekly for this so called potential support.

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Gringo
 

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Price has dropped below the last swing low. The drop has been consistent and quite straight forward since the short was initiated. It's been quite a few days since the signal for a short was given here. So far we don't have a signal for a reversal, so we continue with our short position. When we get a rebound we'll have a signal to wake up and start paying attention. Previous major comments can be read here and here if one's too preoccupied to bother with reading through this thread.

Below in the chart, I have drawn a new supply line and added a mark where the entry was made. Even if one were a day or so late in entry, the analysis, nonetheless, remains the same. At times I wonder why the day traders put themselves through such torture. They could enjoy life, manage a good trade, and even have a full time job, while trading on the side without much time commitment. Then again, the world is full of strange beings. The lure for greater and faster profits is no doubt the siren song for humanity. I don't blame those who want more. It is the quest for betterment that brings out the best and worst in us. It is through this quest we get to make choices, and it is through these choices we discover who we truly are.

On to the GLD Daily chart:

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Gringo
 

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Price for GLD couldn't continue downwards. The SL is intact, however, it is advisable to wake up and start paying attention here. It may be a temporary rise but the first sign of some demand in vicinity has shown up. Notice the higher volume drop a few days ago. Now we had a possible test around the same level with a considerably lower volume? Could it be the end of the down move? Could we regard the high volume drop to be climactic? Are we close to a climactic bottom leading to a climatic change in the winds from bearish to bullish? What could be more exciting in life than following this movement? Just me and my price in total harmony. As the essence of all life can be summed up in a drop of water, the essence of all the this sea of information can be summed up in price.

This heavy volume drop, was it climactic?
or a change in weather, only climatic?

Do we stare at price, and decipher a meaning?
or equate it to life, and make it dramatic?

Life is short, and trading is tough,
or it's because we want to make it automatic?

Make a plan, and test it back and forth,
keep it simple, and not problematic

Follow this plan, and follow the price
get out of this rut, stop being so pathetic

Forget your fall, get back on the horse
Some with no legs still run with a prosthetic


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Gringo
 

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